{ Books MOC Tags: #literature/books/finished
- The $100 startup involves microbusinesses that start without investment, employees, and an idea of what they’re doing
Part 1 - Lessons
Lesson 1 - Convergence
- Convergence is finding something you like to do and something other people are interested in
Lesson 2 - Skill Transformation
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Skill transforming entails using your already existing skills to learn related skills
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ex) Teaching also improves communication, adaptability, and cc skills
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Individuals can be valuable due to their wide skill set
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Think about the skills you have that could be helpful to others when said skills are combined
Lesson 3 - Magic Formula
- Passion or skill + usefulness = success
To start your own business, you just need:
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1. Product or service: what you sell
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2. People willing to pay for it: your customers
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3. A way to get paid: how you’ll exchange a product or service for money
Chapter 2 - Selling Happiness
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Customers usually don’t want to do any of the back-end stuff
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Find ways people can feel good about themselves
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Think entrepreneurially to find ideas:
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Inefficiencies in the marketplace
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New technology or opportunity
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A changing space
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Side projects
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When thinking of new ideas, ask yourself:
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How would I get paid with this idea?
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How much would I get paid from this idea?
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Is there a way I could get paid more than once?
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Value means helping people
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This personal contribution can even be found in basic commodities
Strategies
- Dig Deeper to Uncover Hidden Needs
- ex) Instead of taking traditional wedding pictures, a business incorporates wackiness into the mix
- Make Your Customer a Hero
- ex) A person who teaches people how to use spreadsheets can make them feel like heroes in their workspace
- Sell What People Buy
- People only want what they want
Six Steps to Getting Started
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Decide on your product or service
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Set up a website
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Develop an offer
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Ensure you have a way to get paid
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Announce your offer to the world
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Learn from steps 1-5, then repeat
If you already have a business:
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Contact customers with special offers and incentives
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Introduce new products or services to complement your existing portfolio
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Offer a special deal for clients who repay
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Attract subscribers, clients, or customers
“An ounce of action is worth a ton of theory”
What People Really Want
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Try to give people what they want while taking away what they don’t want
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ex) Love vs stress, money vs conflict, acceptance vs uncertainty
Chapter 3 - Follow Your Passion…Maybe
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Pick something specific rather than something general
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Don’t underprice your service
Opening
I will help clients _________. After hiring me, they will receive [core benefit + secondary benefit].
I will charge $xxx per hour or a flat rate of _____ per service. This rate is fair to the client and to me.
My basic website will contain these elements:
a. The core benefit that I provide for clients and what qualifies me to provide it (remember that qualifications may have nothing to do with education or certifications; Gary is qualified to book vacations with miles because he’s done it for himself many times)
b. At least two stories of how others have been helped by the service (if you don’t have paying clients yet, do the work for free with someone you know)
c. Pricing details (always be up front about fees; never make potential clients write or call to find out how much something costs)
d. How to hire me immediately (this should be very easy
I will find clients through [word-of-mouth, Google, blogging, standing on the street corner, etc.].
I will have my first client on or before ____·[short deadline].
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You don’t get paid for doing your hobby yourself, you get paid for helping others pursue their own hobbies
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Sometimes it’s important to keep your hobbies separate from your work
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If passion drives you, let reason hold the reins
Reality Check Checklist
Questions for You
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Instead of just during your free time, would you enjoy pursuing your hobby at least twenty hours a week?
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Do you enjoy teaching others to practice the same hobby?
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Do you like the ins and outs (all the details) of your hobby?
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If you had to do a fair amount of administrative work related to your hobby, would you still enjoy it?
Questions for the Marketplace
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Have other people asked for your help?
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Are enough other people willing to pay to gain or otherwise benefit from your expertise?
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Are there other businesses serving this market (usually a good thing) but not in the same way you would?
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Passion + good business sense creates an actual business
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(Passion + skill) → (problem + marketplace) = opportunity
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There are different ways of payment
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Getting paid for your labor
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A one-time, passive purchase
Key Points
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As in the examples of Gary and Benny, good businesses provide solutions to problems: “What do I do with all these extra frequent flyer miles?” “How can I easily learn a new language?”
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Many follow-your-passion businesses are built on something indirectly related, not the passion or hobby itself. When considering an opportunity, ask: “Where is the business model?”
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Not every passion or hobby is worth building into a business, and not everyone will want to have a business that is based on a passion or hobby.
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You can establish a specialized consulting business in one day—the more specific, the better.
Chapter 4 - The Rise of the Roaming Entrepreneur
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Being portable is useful in always being able to operate your business
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A U.S. or Canadian Visa allows you to stay up to 90 days in some places
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Teach people how to do things
Becoming a Publisher
Follow these steps to enter the information publishing business. Each step can be made more complicated, but they all relate to this basic outline.
1. Find a topic that people will pay to learn about. It helps if you are an expert in the topic, but if not, that’s what research is for.
2. Capture the information in one of three ways:
a. Write it down.
b. Record audio or video.
c. Produce some combination of a and b.
3. Combine your materials into a product: an e-book or digital package that can be downloaded by buyers.
4. Create an offer. What exactly are you selling, and why should people take action on it? Learn more about offers in Chapter 7.
5. Decide on a fair, value-based price for your offer. For pricing guidelines, see Chapters 10 and 11.
6. Find a way to get paid. PayPal.com is the most ubiquitous method, with the ability to accept payment from users in more than 180 countries. Other options are available if you want more flexibility.*
7. Publish the offer and get the word out. For an overview of hustling, see Chapter 9.
8. Cash in and head to the beach! (This step may require further effort.)
KEY POINTS
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Roaming entrepreneurs are everywhere these days. Many of them are quietly building significant (six figures or higher) businesses while living in paradise.
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Just as not every passion leads to a good business model, a lot of people pursue the nomadic lifestyle for the wrong reasons. The best question to answer is: What do you want to do?
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There are many roads to location independence, but the business of information publishing is especially profitable. (And there’s more than one path to information publishing; it isn’t just about e-books.)
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Everything relates to the lessons that began in Chapter 1: Find the convergence between what you love and what other people are willing to buy, remember that you’re probably good at more than one thing, and combine passion and usefulness to build a real business—no matter where you end up living.
Chapter 5 - New Demographics
There are emerging demographics to target your consumer-base towards:
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Traditional: Age, location, sex/gender, race/ethincity, income
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New: Interests, passions, skills, beliefs, values
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Sometimes, we need to change what we offer and who we offer it to
Strategies
- Latch on to a popular hobby, passion, or craze
- Sell guides related to specific trends
- Sell what people buy
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Instead of recommending people to buy something, find a way to give people what they already want
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Find out what people need by asking:
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“What is your biggest problem with _?”
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“What is the number question you have about _?”
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“What can I do to help you with _?”
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Use surveys carefully to know what you should and shouldn’t do
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Sometimes it’s worth staying focused on the big picture instead of tending to a single customer
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To evaluate ideas, mark them all based off a criteria
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Does the idea produce an obvious product/service?
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Do you know people who will want to buy it?
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Do you have a way to get paid?
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ex) Decision Matrix
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Rate your ideas 1-5 on each of the following categories:
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Impact
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Effort (reverse rating)
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Profitability
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Vision
KEY POINTS
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Who are your people? You don’t necessarily have to think of them in categories such as age, race, and gender. Instead, you can think of them in terms of shared beliefs and values.
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You can often follow a fad, craze, or trend by establishing yourself as an authority and simplifying something about the process for others hoping to benefit from it.
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Use surveys to understand customers and prospects. The more specific, the better. Ask: “What is the number one thing I can do for you?”
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Use the decision-making matrix to evaluate multiple ideas against one another. You don’t have to choose only one idea, but the exercise can help you decide what to pursue next.
Part 2 - Actualization
Chapter 6 - Business Plan
- Sometimes, you have to make the plan simple to start ASAP and respond to whatever happens
Instant Test Marketing Steps
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Care about the problem you’re going to solve, and make sure others do too
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Make sure the market is big enough
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Eliminate “blatant admitted pain”, problems that people already know they have
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Everything sold is for a deep pain or desire. Show people you can help remove or reduce pain
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Make sure your solution is better than the rest
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Ask others about the idea
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Create an outline and ask others to review it
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Keep costs low if you’re a solopreneur
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Get the first sale as soon as possible to build momentum
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Market before manufacturing
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If people buy before you actually make it, just say you’re working on an improved version
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Respond to initial results
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Regroup, and think about what should be done next
140 Characters Mission Statement
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We provide (product/service) for (customers)
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We help (customers) do/achieve/other verb (primary benefits)
Chapter 7 - Unrefusable Offers
- Create an offer where by using only one part, you get all your money back
Successful Pitches
- Understand that what we want and what we say we want are not always the same thing
- People may say they want something, but it may not be as valuable as something else they prefer
- We like to buy, not be sold
- No one likes to be convinced to buy something
Basics
What are you selling?
How much does it cost?
Who will take immediate action on this offer?
What is the primary benefit?
What is a secondary benefit?
What are the main objections to the offer?
How will you counter these objections?
Why should someone buy this now?
What can I add to make this offer even more compelling?
- Nudge your customers
- Provide a gentle nudge to encourage immediate action
Perceived Value
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The price for goods and services is subjective
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Think about value in terms of your customers, rather than how you would like them to think
Compelling Offer Tool Kit
1.1 FAQ
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Use FAQs to provide reassurance to potential buyers and overcome objections
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ex) How do I know this really works? I wonder if there are alternatives to this turns into This really works because, You have to pay to get this product
Rough awesome formats can be used to describe your offer:
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This thing is so awesome! (primary benefit)
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Seriously, it’s really awesome. (secondary benefit)
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By the way, you don’t need to worry about anything (response to concerns)
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See, it’s really awesome. What are you waiting for?
1.2. Incredible Guarantee
- Offer a 100% money back guarantee, or no guarantee at all
1.3. Overdelivering
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Give customers more than what they expected
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Small things count
KEY POINTS
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As much as possible, connect your offer to the direct benefits customers will receive. Like the Alaska coupon books, a compelling offer pays for itself by making a clear value proposition.
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What people want and what they say they want are not always the same thing; your job is to figure out the difference.
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When developing an offer, think carefully about the objections and then respond to them in advance.
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Provide a nudge to customers by getting them to make a decision. The difference between a good offer and a great offer is urgency (also known as timeliness): Why should people act now?
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Offer reassurance and acknowledgment immediately after someone buys something or hires you. Then find a small but meaningful way to go above and beyond their expectations.
Chapter 8 - Launch
- A group bundled various products into a bundle and sold it for 72 hours at 10% the retail price
When launching a product…
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Provide a sneak peek
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Emphasize its importance
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Plan for the big debut
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Provide the calm before the storm
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Drop
After the drop…
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Respond to any issues
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Make a final push
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Thank everyone and close it
Sales aren’t everything
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It’s also important to build good relations and expand your influence
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People will always complain with prices
39 Step Product Launch Checklist
THE BIG PICTURE
1. Ensure that your product or service has a clear value proposition.* What do customers receive when exchanging money for your offer?
2. Decide on bonuses, incentives, or rewards for early buyers. How will they be rewarded for taking action?
3. Have you made the launch fun somehow? (Remember to think about non-buyers as well as buyers. If people don’t want to buy, will they still enjoy hearing or reading about the launch?)
4. If your launch is online, have you recorded a video or audio message to complement the written copy?
5. Have you built anticipation into the launch? Are prospects excited?
6. Have you built urgency—not the false kind but a real reason for timeliness—into the launch?
7. Publish the time and date of the launch in advance (if it’s online, some people will be camped out on the site an hour before, hitting the refresh button every few minutes).
8. Proofread all sales materials multiple times … and get someone else to review them as well.
9. Check all Web links in your shopping cart or payment processor, and then double-check them from a different computer with a different browser.
NEXT STEPS
10. If this is an online product, is it properly set up in your shopping cart or with PayPal?
11. Test every step of the order process repeatedly. Whenever you change any variable (price, order components, text, etc.), test it again.
12. Have you registered all the domains associated with your product? (Domains are cheap; you might as well get the .com, .net, .org, and any very similar name if available.)
13. Are all files uploaded and in the right place?
14. Review the order page carefully for errors or easy-to-make improvements. Print it out and share it with several friends for review, including a couple of people who don’t know anything about your business.
15. Read important communications (launch message, order page, sales page) out loud. You’ll probably notice a mistake or a poorly phrased sentence you missed while reading it in your head.
16. Have you or your designer created any custom graphics for the offer, including any needed ads for affiliates or partners?
MONEY MATTERS
17. Set a clear monetary goal for the launch. How many sales do you want to see, and how much net income? (In other words, what will success look like?)
18. Advise the merchant account or bank of incoming funds.*
19. Create a backup plan for incoming funds if necessary (get an additional merchant account, plan to switch all payments to PayPal, etc.).
20. Can you add another payment option for anyone who has trouble placing an order?
21. For a high-priced product, can you offer a payment plan? (Note: It’s common to offer a slight discount for customers paying in full. This serves as an incentive for customers who prefer to pay all at once while providing an alternative for those who need to pay over time.)
THE NIGHT BEFORE
22. Clear as much email as possible in addition to any other online tasks so you can focus on the big day tomorrow.
23. Write a strong launch message to your lists of readers, customers, and/or affiliates.
24. Prepare a blog post and any needed social media posts (if applicable).
25. Set two alarm clocks to ensure that you’re wide awake and available at least one hour before the scheduled launch.
THE BIG MORNING
26. Schedule your launch time to suit your audience, not you. All things being equal, it’s usually best to launch early in the morning, East Coast time.
27. Soft launch at least ten minutes early to make sure everything is working. It’s better for you to find the problems than to have your customers find them!
28. Write the first three to five buyers to say thanks and ask, “Did everything go OK in the order process?” (Side benefit: These buyers are probably your biggest fans anyway, so they’ll appreciate the personal check-in.)
29. As long as it’s possible, send a quick personal note to every buyer in addition to the automated thank-you that goes out. (If it’s not possible every time, do it as often as you can.)
PROMOTION (CAN BE DONE ON THE DAY OF LAUNCH OR BEFORE)
30. Most important: Ask for help spreading the word. Many readers, prospects, and acquaintances will help by telling their friends and followers, but you have to ask them.
31. Write to affiliates with a reminder about the new offering.
32. Write to journalists or media contacts, if appropriate.
33. Post on Twitter, Facebook, LinkedIn, and any other social networks you already participate in. (It’s not usually a good idea to join a new network just to promote something.)
FOLLOW-UP (DO THIS IN ADVANCE)
34. Write the general thank-you message that all buyers will receive when purchasing.
35. If applicable, write the first message for your email follow-up series that buyers will receive.
36. Outline additional content for future communication and plan to schedule it after you recover from the launch.
GOING ABOVE AND BEYOND
37. How can you overdeliver and surprise your customers with this product? Can you include additional deliverables or some kind of unadvertised benefit?
38. Is there anything special you can do to thank your customers? (For a high-price launch, send postcards to each buyer; for something extra, call a few of your customers on the phone.)
THE LAST STEPS
39. Don’t forget to celebrate. It’s a big day that you’ve worked up to for a long time. Go out to your favorite restaurant, have a glass of wine, buy something you’ve had your eye on for a while, or otherwise do something as a personal reward. You’ve earned it.
40. Start thinking about the next launch. What can you build on from this one? What did you learn that can help you create something even better next time?
- You can have customers for life if you support them with great value
KEY POINTS
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A good launch is like a Hollywood movie: You first hear about it far in advance, then you hear more about it before the debut, then you watch as crowds of people anxiously queue up for the opening.
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A good launch blends strategy with tactics. Strategy refers to “why” questions such as story, offer, and long-term plan. Tactics refers to “how” questions such as timing, price, and specific pitch.
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A series of regular communications with prospects before the launch will help you re-create the Hollywood experience with an audience of any size.
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Tell a good story and be sure to consider the question of timeliness: Why should people care about your offer now?
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Use the Thirty-Nine-Step Product Launch Checklist as a model. Not every step may apply to you, and you may want to add steps of your own.
Chapter 9 - Hustling and Self-Promotion
Types of workers
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A charlatan focuses on talk more than work
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A martyr focuses purely on work with little talk
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A hustler combines work and talk
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It’s important to push yourself out there for more connections on things you want to be known for
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Entrepreneurship, programming
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Style without substance = unwarranted flash, substance without style = respected anonymity, style with substance = impact
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First start off by making something work talking about, then create groups you want to show your project to
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Before you start, know your message
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Go the extra mile when delivering advertising products to your influencers
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Don’t deliberately take advantage of every opportunity to increase income
Building Relationships is a Strategy, not a Tactic
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Try to say yes early on rather than no
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If an opportunity makes you feel exciting and meaningful, do it
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Give things away to encourage socialization
One-Page Promotion Plan
Helps recruit new prospects to your business without getting overwhelmed
Daily
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Maintain a social media presence
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1-3 posts, respond to questions, and monitor a specific metric
Weekly
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Ask for help or joint promotions from colleagues and make sure you return the favor
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Maintain regular communication with prospects and customers
Monthly
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Connect with customers to make sure they’re happy
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Prepare for upcoming events, contests, or product launches
Once in a While
KEY POINTS
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If you’re not sure where to spend your business development time, spend 50 percent on creating and 50 percent on connecting. The most powerful channel for getting the word out usually starts with people you already know.
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If you build it, they might come … but you’ll probably need to let them know what you’ve built and how to get there.
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When you’re first getting started, say yes to every reasonable request. Become more selective (consider the “hell yeah” test) as you become more established.
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Use the One-Page Promotion Plan to maintain a regular schedule of connecting with people as you also spend time building other parts of your business.
Chapter 10 - Show the Money
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At the end of the day, businesses are only successful if they make money
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Try not to prioritize popularity over income
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Spend as little money as possible and make as much money as you can
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Don’t be afraid to spend lots of money if it ensures growth
Making more money
1. Price your product or service in relation to the benefit it provides, not the cost of producing it.
- As long as people get what they want, you can charge anything
2. Offer customers a limited range of prices.
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Having a high-end version creates an anchor price, which makes cheaper alternatives look more reasonable
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Sometimes, adding value for the premium version isn’t even necessary
3. Get paid more than once for the same thing.
- Provides a reliable source of income
ex) subscribers
- Don’t be afraid to increase your price
KEY POINTS
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There’s nothing wrong with having a hobby, but if you’re operating a business, the primary goal is to make money.
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Going into debt to start a business is completely optional. Every day, people open and operate successful ventures without any kind of outside investment or borrowing.
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The average business can improve its odds of success greatly by getting paid in more than one way and at more than one time. You can do this with a variety of methods. (We’ll cover this much more in Chapter 11.)
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Whether it’s money, access to help, or anything else, you probably have more than you think. How can you get creative about finding what you need?
Part 3 - Leverage and Next Steps
Chapter 11 - Moving on Up
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Make small changes that create a big impact (tweaks) to your business
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Changing plenty of variables at once can lead to large changes
ex) Traffic, conversion rate, sales price
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Upsell, cross-sell, introduce sales after sales
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Advertise value to your customers
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Create a diversified hall of fame of reviews
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Create additional offers
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Customers are willing to buy things at the confirmation page
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Encourage referrals
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Hold contests
Product to Service
- Try to think of ways to incorporate a service into your product line or vice versa
ex) Aside from your personalized service, offer generic things
Key Points
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“Moving on up” by increasing income in an existing business is usually easier than initially starting the business.
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By making careful choices, you can often grow the business without dramatically increasing the workload, allowing you to scale without hiring more people.
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Easy growth options include adding a service to a product-based business (or vice versa), deploying a creative series of upsells and cross-sells, and making a few key tweaks.
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Horizontal expansion involves going broader by serving more customers with different (usually related) interests; vertical expansion involves going deeper by serving the same customers with different levels of need.
Chapter 12 - Franchising Yourself
- Buying someone’s franchise usually isn’t a good idea
ex) A software engineer turned her interest in dieting into a business
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Option 1: Reach more people with the same message.
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Option 2: Reach different people with a new message.
Partnership
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Joint ventures are where two or more people join forces to collaborate on a single new project
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When in a joint venture, be sure to clarify:
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Money distribution
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Responsibilities
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Information shared
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Time period of project
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Times of contact
One Page Partnership Agreement
Partners: [Partner 1] and [Partner 2]. These partners agree to collaborate in good faith on a mutually beneficial project known as [project name].
Overview: [summary of project, including outcomes and expected results]
Revenue Sharing: Net income for the project will be split on the basis of [percentage] percent to [Partner 1] and [percentage] percent to [Partner 2]. All minor costs associated with the project will be deducted prior to calculating net income. If any particular cost exceeds [amount], both partners must approve the decision.
Life of Revenue-Sharing Agreement: The revenue-sharing agreement will last for [period of time], at the end of which the partners will decide if it should be continued, discontinued, or revised.
Publication and Sale: The project will be offered for sale on [websites and any other sources].
Customer Support: [Partner 1] will be responsible for [duties]. [Partner 2] will be responsible for [duties]. Project feedback from customers will be shared between both parties.
Marketing: Both parties will actively market the project to ensure its success. This will include promotion on [websites], through each partner’s online community and offline networks, and each party requesting coverage of the project from other influential websites.
Time Line: The partners agree to complete all aspects of the project to prepare for launch on [date].
Outsourcing
- Pro-Outsourcing
- As much as we may want to do everything by ourselves, sometimes we need to outsource to have our company grow
- Anti-Outsourcing
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You can always trust yourself
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Whether your business should outsource depends on the business and the owner
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If the assistant is reliable and has a clear understanding on what they need to do
ex) A hired professional, or delegating simple tasks
Business Audit
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A business audit is a checkup that fixes little problems and identifies small actions you can take to produce great results overtime
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Some areas for inspection include:
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Streams of income
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Message/Purpose
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Prices
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The retention of frequent customers
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Data collecting and experimenting
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Missing opportunities
Key Points
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By leveraging skills and contacts, you can be in more than one place at the same time. Strategies to do this include outsourcing, affiliate recruitment, and partnerships.
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Use the hub-and-spoke model of maintaining one online home base while using other outposts to diversify yourself.
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When it comes to outsourcing, decide for yourself what’s best. The decision will probably come down to two things: the kind of business you’re building and your personality.
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Carefully chosen partnerships can create leverage; just make sure that’s what you want to do. Use the One-Page Partnership Agreement for simple arrangements.
Chapter 13 - Going Long
There are three approaches to the future management of your business:
- Stay Small
- Beneficial if you don’t want the business to consume your life
- Go Medium
- Continue to expand, but not to mainstream levels
- Split the Difference
- Becoming a solopreneur
Work on Your Business
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The more responsibilities you have, the harder it is to create new ideas
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Spend some time to improve the business, rather than maintain
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Business development (products, partnerships)
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Offer development (Sales, events)
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Problem solving (bad customer service, high product defect %)
Monitoring Your Business
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Select 1-2 metrics that you’re always aware of (sales, cash flow, leads)
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Make time for bi-weekly or monthly reviews to dive into the overall business
Built-To-Sell
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Building a business that can survive without the owner’s guidance
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Long-term play
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Scalable businesses are built on something both teachable and valuable
Key Points
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There’s more than one road to freedom, and some people find it through a combination of different working arrangements.
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“Going long” by pursuing growth and deciding to stay small are both acceptable options, and you can split the difference by “going medium.” It all depends on what kind of freedom you’d like to achieve.
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Work “on” your business by devoting time every day to activities specifically related to improvement, not just by responding to everything else that is happening.
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Regularly monitor one or two key metrics that are the lifeblood of your business. Check up on the others monthly or bimonthly.
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A business that is scalable is both teachable and valuable. If you ever want to sell your business, you’ll need to build teams and reduce owner dependency.
Chapter 14 - But What If I Fail?
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“Your time is limited, so don’t waste it living someone else’s life”
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After coming face-to-face with death, everything takes on a whole other level of meaning
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Trust your own judgement
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Value input, but only from people who have unique perspectives that wish your improvement
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We may fear the possible failure and debt we can find ourselves in when our business doesn’t go as planned
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Creating a launch is better than just simply releasing your product or service
Key Points
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Advice can be helpful, but you can also just step out and take a big leap. Don’t wait for someone to give you permission.
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More than competition or other external factors, the biggest battle is against our own fear and inertia. Thankfully, this also means we are in complete control of managing it.
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When you have a success or “moment you knew” story, hold on to it; these experiences are powerful and will help you later if times get hard.
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The most important lesson in the whole book: Don’t waste your time living someone else’s life.
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Creativity and initiative will get you far
Application
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Execution > Planning
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What am I waiting for? Make entrepreneurship mandatory in my daily life
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Business potential
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Always be on the lookout for business ideas, and evaluate its potential
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Spend time learning new skills
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App development
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Video editing
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Website creation
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Stop being a pussy and start making more connections and talking to more people
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Discord entrepreneur servers
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Reddit posts
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Just start now, and worry about everything later
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Be sure to be aware of the business’ status to keep it moving forward
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